On-chain Treasury repo executed with USDC collateral

A consortium of major financial institutions has completed the first fully on-chain financing transaction of US Treasuries using USDC as collateral, in a development that could reshape capital market infrastructure. The trade, carried out on the Canton Network and executed via Tradeweb, enabled tokenised US Treasuries to be financed against stablecoin liquidity with near-instant atomic settlement. Unlike previous experiments in blockchain-based repo, the transaction was conducted entirely on-chain and outside standard market hours, demonstrating the potential for 24/7 funding access.

Participants in the industry working group include Bank of America, Circle, Citadel Securities, Cumberland DRW, Digital Asset, DTCC, Hidden Road, Société Générale, Tradeweb and Virtu Financial. Their collaboration centres on testing how traditional assets and digital cash instruments can interoperate within a regulated environment.

The transaction showed that US Treasuries custodied at DTCC’s subsidiary, The Depository Trust Company, could be tokenised and mobilised on the Canton Network for use as collateral. At the same time, USDC was minted and redeemed natively on the platform to provide the cash leg, ensuring both sides of the repo were executed and settled on-chain.

Crucially, the deal was executed on a Saturday, highlighting the possibility of financing trades beyond the standard settlement windows of global markets. Market participants see this as a step towards continuous liquidity and collateral mobility, reducing dependence on legacy processes tied to business hours.

The Canton Network is positioning its Global Collateral Network as the foundation for these developments, aiming to allow high-quality liquid assets such as Treasuries to move seamlessly across a digital market structure. The ability to combine traditional settlement security with programmable features of decentralised finance is seen as a way to extend the utility of existing assets while retaining institutional safeguards.

Tradeweb’s involvement enabled access to its established liquidity pools for US Treasuries, ensuring execution aligned with existing market practices while settlement took place on-chain. The working group said the proof-of-concept showed that fully on-chain repo trades can be conducted in real time without compromising confidentiality, as individual institutions’ roles were not disclosed.

This initiative reflects a growing trend among global financial institutions to explore tokenisation of real-world assets and the use of stablecoins for settlement. Proponents argue that such structures can reduce settlement risk, increase efficiency and provide continuous access to funding.

While the pilot was limited in scope, further transactions are expected later this year as participants expand testing across different collateral types and funding scenarios. If adopted more widely, the approach could accelerate the integration of tokenised assets into mainstream finance and push markets towards round-the-clock availability.

For corporate treasurers and institutional investors, the development underlines the direction of travel in capital markets: towards infrastructure that blends the liquidity and risk frameworks of traditional finance with the flexibility of blockchain-based systems.

 

UK consumer sentiment rises after BoE rate cut

UK consumer sentiment improved in August, lifted by easing financial pressures, stronger labour market conditions and lower expectations of further interest rate hikes. The S&P Global UK Consumer Sentiment Index rose to 47.0 in August from 45.1 in July, its highest level since October 2024. All five subcomponents, covering financial wellbeing, labour market conditions, spending, savings and debt, recorded gains. Although the headline figure remained below the neutral 50 mark, the rise points to the most resilient household outlook in nearly a year.

Households reported reduced strain on current finances compared with July, with the index of financial wellbeing climbing above its long-run average. Pessimism about the year ahead eased to its lowest in nine months, with IT workers the most optimistic and employees in education the least confident. Retail was the only other sector anticipating a decline, though the drop was minimal.

Labour market sentiment strengthened sharply, registering its second-highest reading since the survey began in 2009. Perceptions of workplace activity improved at the fastest pace since July 2021, while income from employment rose at its quickest rate since late 2024. Growth was evident across both private and public sectors, narrowing the gap in pay trends. Job security sentiment also reached its highest point in almost a year, with London households reporting the greatest confidence.

Expectations of further monetary tightening eased following the Bank of England’s rate cut earlier this month. Just 39% of households now anticipate a hike, down from 49% in July, with the balance between those expecting a rise and those predicting a cut narrowing significantly.

 

Credit markets adapt as issuance soars

Investor appetite for corporate bonds remains strong, but evolving preferences are shaping how companies raise capital, according to Jonny Fine, global head of investment grade credit at Goldman Sachs.

In the first half of 2025, around US$1.5 trillion of investment-grade bonds were issued across US dollar and euro markets, the fastest pace in years. Fine describes this as “extraordinary supply” met with “extraordinary demand,” keeping credit spreads close to their lowest levels in two decades.

“Notwithstanding broader volatility, the US investment-grade market and the euro investment-grade market have remained oases of calm,” he says.

One notable shift has been the rise of euro-denominated issuance. Fine highlights that “as global capital has reshuffled around the world, one of the things we have seen has been the growth of the euro investment-grade bond market.” US corporations, in particular, have tapped euro demand, driving the euro share of issuance to 40% in the second quarter of 2025.

Looking ahead, Fine expects issuance to stay elevated, though slightly below the first half’s record-setting levels. “Issuance activity will remain robust, although not quite at the pace we saw in the first half of the year - and certainly, the trends we've seen in euro investment-grade activity we expect to endure,” he says.

 

Deutsche Bank adopts China’s foreign currency reforms

Deutsche Bank has become the first EU bank to implement China’s new “1+6” foreign currency liberalisation framework, designed to simplify cross-border transactions for multinational corporations operating in the country. The framework, introduced by the State Administration of Foreign Exchange (SAFE), consolidates existing rules to create a unified model for foreign currency payments and FX conversions.

The bank rolled out the system across its Shanghai, Beijing and Guangzhou branches. The move means corporate clients can now manage cross-border payments under a streamlined regulatory structure that reduces compliance burdens and increases operational efficiency.

For treasurers running centralised models, the framework enables consistent processes across China’s major financial hubs. It allows corporates to submit payment instructions directly to the bank for immediate execution, cutting processing times from several days to minutes. By accelerating settlement, the system supports improved liquidity management and faster cash deployment across global operations.

The reforms are also expected to lower compliance costs. Deutsche Bank applies real-time risk monitoring tools to maintain regulatory oversight without disrupting transaction flows. Where documentation is still required, the bank uses its electronic platform to automate submission and verification, further reducing turnaround times.

The changes reflect a broader shift in China’s approach to capital flows, aiming to create more predictable and transparent conditions for foreign companies. For corporates, this means fewer operational frictions when moving funds across borders, particularly for those managing high transaction volumes or complex treasury structures.

Deutsche Bank’s adoption of the framework reflects how international banks are beginning to align with China’s latest foreign currency rules. For corporates, the reforms signal a gradual shift towards more predictable conditions for cross-border funding, with potential implications for liquidity planning and treasury operations across the market.

 

Citi expands rollout of commercial banking platform

Citi is extending the global rollout of its digital client platform, CitiDirect Commercial Banking, which now supports more than half of its commercial banking client base and includes new AI-driven features. Launched in 2023, the platform is live in the US, Hong Kong, India, Singapore, the UK, Canada, Australia and Brazil, covering 57% of the bank’s commercial banking clients. Citi reported around 2.3 million client sessions to date, with the platform serving as a single entry point for services including cash, loans, trade, FX, servicing and onboarding.

The bank has introduced a series of enhancements aimed at simplifying processes for mid-sized corporates. These include AI-powered automation for data extraction, form filling, query routing and fraud detection, alongside proactive “next-best-action” suggestions to help users complete common tasks more efficiently.

Know Your Client (KYC) renewals have been integrated into the platform through a “one field, one-time” process, using pre-filled information and automated notifications to reduce manual effort. Onboarding has also been fully digitised, with real-time status updates cutting turnaround times significantly.

Citi says it has improved ERP connectivity by reducing integration time from seven weeks to less than a day via its Citi Integrator tool. A new Digital Servicing Hub has also been added to centralise queries, updates and document submission, with the aim of improving client communication.

 

Santander pushes data and AI-first strategy with OpenAI collaboration

Santander is accelerating its shift towards becoming what it calls an “AI-native” bank, expanding its use of artificial intelligence across global operations and rolling out OpenAI technology to tens of thousands of staff. The bank has used AI for years in areas such as fraud detection and customer service, but its latest strategy goes further by embedding data and AI into all business functions. In 2024, these initiatives delivered more than €200m in savings, while AI copilots supported over 40% of contact centre interactions. In Spain alone, speech analytics now processes 10 million calls annually, freeing up an estimated 100,000 hours for staff to focus on higher-value work.

A key part of the plan is Santander’s collaboration with OpenAI. The bank has deployed ChatGPT Enterprise to nearly 15,000 employees in Europe and the Americas within two months, one of the fastest implementations of its kind. The rollout is expected to cover 30,000 users (around 15% of the workforce) by year-end.

“AI tools empower our developers, marketers, bankers and service agents to resolve complex tasks more efficiently,” says Ricardo Martín Manjón, chief data and AI officer at Banco Santander.

Early use cases include investment copilots providing real-time strategy suggestions, hyper-personalised customer journeys, and AI agents automating back-office processes. Santander says 6,000 developers are already using AI tools, reporting productivity gains of 20-30% for some tasks.

Looking ahead, the bank plans to introduce mandatory AI training for all employees from 2026, with a focus on responsible adoption. It is also working closely with regulators to ensure AI applications comply with ethical, legal and cybersecurity standards.

By 2027, Santander’s roadmap envisions scaling agentic AI across front- and back-office functions, aiming to move towards fully conversational banking with virtual assistants embedded into customer interactions.

 

AlRayan Bank upgrades corporate digital banking with Finastra

AlRayan Bank has gone live with Finastra’s Corporate Channels platform, introducing upgraded digital services for its corporate clients. The Qatari bank, one of the country’s largest Islamic institutions with international reach, said the rollout would streamline cash management and trade finance while enabling mobile-first capabilities.

The implementation, completed in four months with regional partner IBC Solutions, also included an upgrade to Finastra’s Trade Innovation platform to align with ISO 20022 MX messaging standards. Both systems are designed to support AlRayan Bank’s Shariah-compliant services.

Finastra Corporate Channels provides corporates with a unified interface across trade, supply chain finance, cash management, financing and treasury services. The system incorporates embedded security tools, compliance features and real-time analytics, while its API-enabled design allows integration with other platforms and the configuration of tailored workflows.

By modernising its digital infrastructure, AlRayan Bank aims to reduce time-to-funds and support new product launches, creating opportunities for corporate clients to manage liquidity and transactions more efficiently. The bank has also adopted Finastra’s Essence core banking solution and continues to use its Opics treasury platform, reflecting an expanded collaboration between the two institutions.

 

Bluechain teams up with Visa on B2B payments

Bluechain has partnered with Visa to expand digital payment options for UK businesses, aiming to simplify B2B transactions in sectors where card acceptance has traditionally been limited. The collaboration allows companies to pay any supplier using Visa cards, even when suppliers do not accept them directly. Bluechain’s platform manages billing, collection, reconciliation and merchant-of-record requirements in the background, giving firms greater visibility and control over payment flows.

The UK processes more than £2.8 trillion in annual B2B spend, much of it still reliant on manual or fragmented systems. The initiative is targeted at industries such as construction, freight, hospitality and wholesale distribution, where card-based payments remain underused.

According to Bluechain, the partnership provides a new infrastructure layer that integrates directly into existing business tools, reducing administrative complexity and supporting working capital management. Visa said the move brings smarter payments and data insights into corporate workflows, enabling businesses to improve efficiency and decision-making.

By combining Bluechain’s orchestration technology with Visa’s global network, the partners intend to modernise B2B payments in the UK, extending some of the speed and convenience already common in consumer transactions.

 

Manchester United scores payments deal with Sokin

Manchester United has agreed a multi-year partnership with UK-based fintech Sokin, naming it the club’s official global business payment solutions partner. The deal will see Sokin provide its business payments platform to support the club’s international operations. The platform is designed to streamline cross-border accounts payable and receivable, treasury functions and other business-to-business transactions, using AI to improve efficiency and reduce costs.

For Manchester United, the move reflects a push to modernise financial processes as the club continues to expand its global footprint. The partnership is expected to enhance clarity and control over international payments, an area of growing importance for organisations with complex multinational operations.

Sokin has previously worked with leading European football clubs and supported the British & Irish Lions on its rugby union Test series in Australia earlier this year. The firm positions itself as part of a wider shift towards digital-first business payments, where transparency and speed are increasingly valued.